logo
Frost Law Supports Successful IRS Settlement Over $790,000 in Pandemic-Era Tax Credits

Frost Law Supports Successful IRS Settlement Over $790,000 in Pandemic-Era Tax Credits

Business Wire6 days ago
ANNAPOLIS, Md.--(BUSINESS WIRE)-- Glen Frost, Founder and Managing Partner of Frost Law, is pleased to announce a successful resolution in the case Ostroff Injury Law PC v. United States, in which the firm partnered with SouthBank Legal to resolve a dispute with the Internal Revenue Service over more than $790,000 in unpaid Employee Retention Credit (ERC) claims.
Frost Law served as strategic counsel in the matter, bringing in SouthBank Legal litigation partners Nathaniel S. Pollock and Paul E. Harold to lead the federal case. Together, the firms compelled the IRS to settle the dispute over the unpaid refund.
'At no additional cost to my firm, the Frost team engaged a litigation partner with experience specific to my issues,' said Jon Ostroff, Founding Partner of Ostroff Injury Law. 'The litigation attorneys had specific experience in the type of Department of Justice and IRS matters that were at issue in my matter. Working together, the two firms achieved an outstanding result for my firm. As a former litigation and trial attorney, I was very impressed with their efforts and appreciative of the deep bench of resources that the Frost Law firm had at their disposal to prevail in my case.'
The lawsuit, filed in the U.S. District Court for the Eastern District of Pennsylvania, was initiated after Ostroff Injury Law experienced extensive delays from the IRS in receiving the pandemic-era relief funds it was owed.
'Our client, like many businesses nationwide, relied on the ERC program to stay afloat during an incredibly challenging time,' said Glen Frost. 'Working alongside our trusted litigation partners at SouthBank Legal, we are proud to have helped Ostroff Injury Law obtain a successful and just outcome in the face of prolonged delays and administrative uncertainty.'
Under Glen's leadership, Frost Law has guided clients through the evolving ERC landscape since the program's inception. The firm continues to work with employers whose claims remain delayed, under review, or wrongfully denied, while coordinating closely with litigation counsel when necessary to achieve results.
About Frost Law
Frost Law is the home of accomplished attorneys, certified public accountants, financial planners, and other legal, accounting, and financial professionals. Our core practice areas include civil and criminal tax controversy; tax planning for individuals and businesses; transactions involving business and general counsel services; commercial and probate litigation; estate and trust law, including planning and administration; and professional grievance investigations. We serve clients throughout the country and abroad, offering virtual services for clients who prefer to meet remotely. Headquartered in Annapolis, Maryland, Frost Law has expanded its footprint across the East Coast, with office locations in New York, Pennsylvania, the District of Columbia, Virginia, Florida, and most recently, Atlanta, Georgia. Our growing presence in Georgia and the Atlanta metro area supports our commitment to providing comprehensive legal and financial solutions to clients in the Southeast.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

9 Secret Strategies the Wealthy Use To Cut Their Tax Bills, According to Preston Seo
9 Secret Strategies the Wealthy Use To Cut Their Tax Bills, According to Preston Seo

Yahoo

time4 hours ago

  • Yahoo

9 Secret Strategies the Wealthy Use To Cut Their Tax Bills, According to Preston Seo

If you feel like you're paying way too much in taxes, you're not alone. Even financial pros like Preston Seo, host of 'The Legacy Investing Show,' have ended up owing more than they would have liked. Learn More: Read Next: In a recent YouTube video, Seo shared that he once owed over $30,000 in taxes on top of his W-2 withholdings. But that all changed when he learned how to work within the U.S. tax code to keep more of his income. 'Now my tax bill looks completely different — not because I make less, I actually make more — but because I learned how to legally use the system the way that it was written,' Seo said. Here are nine IRS-approved strategies the wealthy use to pay less in taxes, that you can start using, too. 1. Max Out Your Health Savings Account If you have a high-deductible health plan, you likely qualify for a health savings account (HSA) — and you should be taking advantage of it. 'Most people don't realize how powerful these are,' Seo said. 'You get a tax deduction going in, tax-free growth and also tax-free withdrawals for qualified medical expenses.' To get the full tax benefits, Seo contributes the maximum amount to his HSA every year, but he doesn't use the account to pay his medical bills. 'I pay those out-of-pocket and keep the receipts,' he said. 'That lets my HSA compound untouched, and years from now, I'll be able to reimburse myself, tax-free, with decades of growth on top. It's like a hidden retirement account, only better.' Find Out: 2. Use a Backdoor Roth IRA To Grow Tax-Free Wealth A backdoor Roth IRA is a strategy that allows high-income earners to contribute to a Roth IRA, even if their income exceeds the IRS limits for direct contributions. (For 2025, single filers must have an income of less than $150,000 and joint filers must make less than $236,000 to make a full contribution to a Roth IRA.) To use this strategy, contribute money to a traditional IRA, and then convert it into a Roth IRA. 'Every single year, I max out [my IRA contributions], convert them, and now I have money growing completely tax-free,' Seo said. 3. Open a Solo 401(k) A Solo 401(k) is a retirement savings plan that can be utilized by self-employed individuals or business owners with no full-time employees. You may qualify for this type of account and not even realize it. 'Let's say you have freelance income from consulting, Airbnb or even selling things online — you may qualify for a Solo 401(k),' Seo said. 'I use mine through one of my LLCs, and it's a great way to reduce tax on side income while also building wealth.' 4. Save on Self-Employment Taxes With an S Corp Election If you're currently registered an LLC, you should consider filing for S Corp status to enjoy the tax benefits that come with it. To qualify, you must own a business that makes $50,000 or more in profit. 'This move could be a game changer,' Seo said. 'When you elect S Corp status, you pay yourself a salary and you take the rest of your income as distributions, which aren't subject to self-employment tax.' With the help of his accountant, Seo filed for S Corp status as soon as his business crossed the profit threshold. 'The first year alone, that saved me nearly $20,000 in taxes,' he said. 5. Claim the Home Office Deduction If you are self-employed and have an area of your home that you exclusively use for business, you can deduct a portion of your housing costs, including your mortgage or rent, utilities and even home repairs. 'I use it [for a] 300-square-foot room in my house,' Seo said. 'It's about 6.25% of the house, and that means I can write off over $7,000 per year just for working where I already live. I just keep the documentation, like photos and floor plans, in case I ever get asked.' 6. Hire Your Children To Shift Income Tax-Free If you have children and you have your own business, you can legally hire your kids to work for you. Seo pays his son to help him with content and perform other administrative tasks. 'The key here is the work must be real, age-appropriate and documented,' he said. 'We track the hours, use time sheets and keep everything above board. Since he earns under the standard deduction threshold, he pays no income tax. I get the deduction, and he learns real financial responsibility. It's a great way to shift income into a 0% bracket, and also build wealth inside your family legally.' 7. Use the Augusta Rule To Rent Your Home Tax-Free The Augusta Rule is an IRS rule that allows homeowners to rent out their home for up to 14 days per year tax-free. Seo recommends renting your home to your business. 'If you have any strategy sessions, filming days or internal retreats, you can use your home and have your business pay you,' Seo said. 'I do this several times a year. I receive income without paying a dime of tax on it.' 8. Take Advantage of the Short-Term Rental Loophole If you own a rental property, you'll want to take advantage of this tax break. 'Real estate is one of the few areas of the tax code where the government practically rewards you with deductions,' Seo said. 'If you do own or plan to buy a short-term rental and manage it actively, you can use appreciation losses to offset your other active income, and this is a big deal.' Seo owns several short-term rentals. He keeps guest stays under seven days and puts in over 500 hours per year managing them. 'That lets me treat the income as active, meaning I can use cost segregation and also bonus depreciation to reduce taxes on my other businesses,' he said. 'One year, I wiped out over $50,000 in taxable income using the strategy.' 9. Use a 1031 Exchange To Defer Capital Gains Taxes A 1031 exchange is a tax-deferral strategy that allows a real estate investor to sell one investment property and reinvest the proceeds into another 'like-kind' property without immediately paying capital gains taxes on the profit from the sale. 'That means you defer the tax bill, and you get to reinvest all of your profit,' Seo said. 'I used this when I sold two four-plexes. I rolled the equity into a 24-unit commercial building and paid no tax on the gains. That single move preserved hundreds of thousands of dollars.' More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard Warren Buffett: 10 Things Poor People Waste Money On 5 Types of Cars Retirees Should Stay Away From Buying This article originally appeared on 9 Secret Strategies the Wealthy Use To Cut Their Tax Bills, According to Preston Seo

Class Action Filed Against Fortrea Holdings - August 1, 2025 Deadline to Join - Contact Faruqi & Faruqi
Class Action Filed Against Fortrea Holdings - August 1, 2025 Deadline to Join - Contact Faruqi & Faruqi

Associated Press

time9 hours ago

  • Associated Press

Class Action Filed Against Fortrea Holdings - August 1, 2025 Deadline to Join - Contact Faruqi & Faruqi

If You Suffered Losses Exceeding $50,000 in Fortrea Holdings between July 3, 2023 and February 28, 2025 Securities Litigation Partner James (Josh) Wilson Encourages you to contact him directly at 877-247-4292 or 212-983-9330 (Ext. 1310). [You may also click here to find out if you qualify for the class action] New York, New York--(Newsfile Corp. - July 27, 2025) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Fortrea Holdings Inc. ('Fortrea' or the 'Company') (NASDAQ: FTRE) and reminds investors of the August 1, 2025 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company. [ This image cannot be displayed. Please visit the source: ] Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Fortrea overestimated the amount of revenue the Pre-Spin Projects were likely to contribute to the Company's 2025 earnings; (2) Fortrea overstated the cost savings it would likely achieve by exiting the TSAs; (3) as a result, the Company's previously announced EBITDA targets for 2025 were inflated; (4) accordingly, the viability of the Company's post-Spin-Off business model, as well as its business and/or financial prospects, were overstated; and (5) as a result, the Company's public statements were materially false and misleading at all relevant times. On September 25, 2024, the investment bank Jefferies published a report (the 'Jefferies Report') downgrading Fortrea from buy to hold. Among other things, the Jefferies Report cited perceived weaknesses in the Company's business model as a CRO amid pressure on biotechnology funding and suggested that the cost savings Fortrea expects to achieve by exiting the TSAs are 'not as material as [o]ne [m]ight think,' stating that 'IT infrastructure costs to exit the TSAs are already non-GAAPed out of adjusted EBITDA. Thus, once TSAs are exited, Fortrea will just be replacing TSA costs with internal operating costs.' On this news, Fortrea's stock price fell $2.73 per share, or 12.29%, to close at $19.48 per share on September 25, 2024. Then, on December 6, 2024, market analyst Baird Equity Research ('Baird') downgraded Fortrea to neutral from outperform after the Company abruptly cancelled two scheduled conferences. A Baird analyst said that 'given our ongoing concerns around the sector, Fortrea's choppy history post spin, and lack of clarity on the abrupt communications course change, we cannot recommend an actionable investment (buy or sell)[.]' On this news, Fortrea's stock price fell $1.90 per share, or 8.06%, to close at $21.67 per share on December 6, 2024. Finally, on March 3, 2025, Fortrea announced its fourth quarter and full year 2024 financial results, disclosing that its 'targeted revenue and adjusted EBITDA trajectories for 2025 [were] not in line with [its] prior expectations.' Specifically, in an earnings call held that same day, Fortrea revealed that the Company's Pre-Spin projects are 'late in their life cycle [and] have less revenue and less profitability than expected for 2025" and that 'post-spin work is not coming on fast enough to offset the pre-spin contract economics.' The Company also said this 'older versus newer mix issue will continue to negatively impact Fortrea's financial performance during 2025.' On this news, Fortrea's stock price fell $3.47 per share, or 25.05%, to close at $10.38 per share on March 3, 2025. The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not. Faruqi & Faruqi, LLP also encourages anyone with information regarding Fortrea's conduct to contact the firm, including whistleblowers, former employees, shareholders and others. Learn whether you may be eligible to participate in the Fortrea Holdings class action by visiting or contacting Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). Follow us for updates on LinkedIn, on X, or on Facebook. Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP ( ). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner. To view the source version of this press release, please visit

Major IRS Changes Coming for Business Tax Audits in 2025
Major IRS Changes Coming for Business Tax Audits in 2025

Newsweek

timea day ago

  • Newsweek

Major IRS Changes Coming for Business Tax Audits in 2025

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The Internal Revenue Service (IRS) announced new guidance on Friday aimed at dramatically reducing examination times for corporate taxpayers while making the audit process more collaborative and efficient. The Interim Guidance Memorandum introduces sweeping changes to how the IRS conducts business tax examinations, with implementation beginning in 2025 and extending through 2026. Why It Matters These changes could fundamentally alter how corporations experience tax audits, potentially saving businesses significant time and resources during examination periods. The reforms target long-standing inefficiencies that have plagued the corporate tax examination process, with some procedures taking years to complete under current protocols. For large corporations, the expanded settlement options and streamlined processes could provide greater tax certainty and allow for more predictable business planning. The changes also signal the IRS's recognition that its traditional examination methods may have been counterproductive to both tax collection efficiency and taxpayer compliance. What To Know The memorandum, titled "Reinforcing the Customer Focused, High Efficiency Large Business & International Examination Process," represents a significant shift toward what the IRS calls a "culture of collaboration" with taxpayers to resolve tax issues more quickly. These audit process changes come amid a broader series of IRS updates for the 2025 tax year that have affected individual taxpayers, including increased child tax credits, revised 1099-K reporting thresholds, and inflation-adjusted tax brackets and standard deductions. While those changes primarily impacted individual filers, the July announcement specifically targets business tax examinations. The new guidance introduces three major procedural changes that will reshape corporate tax examinations: Elimination of Acknowledgement of Facts Process: The IRS will phase out its Acknowledgement of Facts (AOF) Information Document Request process by 2026, citing "limited value and extended timelines." Until December 31, 2025, taxpayers can choose whether to participate in AOF procedures. This transition period allows for stakeholder feedback before permanent implementation. Expanded Accelerated Issue Resolution: The memo clarifies that Accelerated Issue Resolution (AIR) now applies to Large Corporate Cases, previously handled under the Coordinated Examination Program. AIR closing agreements allow resolved issues to apply across all filed return years within the current audit cycle, potentially resolving multiple years of potential disputes simultaneously. Enhanced Fast Track Settlement Reviews: The IRS will implement stronger internal review processes before denying taxpayer requests for Fast Track Settlement (FTS). Additional approvals are now required, supporting broader use of this expedited resolution process. What People Are Saying The Internal Revenue Service wrote in the announcement: "These changes are intended to enhance taxpayer service and tax administration by streamlining examination resources, facilitating timely issue resolution, and expediting tax certainty." FILE - A sign outside the Internal Revenue Service building is photographed May 4, 2021, in Washington. FILE - A sign outside the Internal Revenue Service building is photographed May 4, 2021, in Washington. AP Photo/Patrick Semansky, File What Happens Next The changes will roll out gradually over the next two years, with the AOF phase-out extending through 2025 and full implementation expected by 2026.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store